March 10, 2011

Peru's poultry industry shows interest in US DDGS

Over 80 representatives of the quick-growing Peruvian poultry sector were attracted by the US Grains Council's DDGS Promotion Seminar in Lima, Peru.

"Participants are very excited about getting access to US DDGS," said Kurt Shultz, USGC regional director for Latin America and the Caribbean. "During our time there, two groups indicated they are considering importing additional DDGS before June."

Some of the components of the seminar were a DDGS supply-demand outlook and a case study on Costa Rica's successful implementation of DDGS. Given the high attendance, the council plans to follow up with more seminars throughout Peru.

Part of the schedule is a seminar in Ecuador targeted at convincing livestock industry representatives to join Peru in importing DDGS.

Both Peru's economy and poultry industry are expanding. Last year, Gross Domestic Product for the nation grew by 8%, and analysts are forecasting a yearly growth rate of 6% for the next three years.

Simultaneously, poultry sector growth produced a 20% jump in imports of US corn from 1.5 million tonnes (59.1 million bushels) to 1.9 million tonnes (74.9 million bushels).

Peru has in recent times imported DDGS, a step that Shultz sees as doubly important.

"Having DDGS in the market as a product they can only get from the United States may also influence some of their purchasing decisions between US and Argentine corn," he said. "Right now the freight advantage is not there for our corn, so the council is exploring all options to promote US origin feed ingredients."